Derivative Instruments (Tables)

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Asset and Liability Management Derivative Positions of Company

The following table summarizes the asset and liability management derivative positions of the Company:

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
December 31, 2017
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	1,000	$	28		6.70	$	3,600	$	16		1.55
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		3,772		5		6.73		–		–		–
Net investment hedges
Foreign exchange forward contracts		–		–		–		373		8		.05
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		1,632		7		.10		1,326		2		.04
Sell		15,291		10		.89		4,511		10		.03
Options
Purchased		4,985		65		7.57		–		–		–
Written		1,285		21		.10		5		–		.05
Receive fixed/pay floating swaps		2,019		5		16.49		5,469		–		8.43
Pay fixed/receive floating swaps		4,844		21		7.69		46		1		6.70
Foreign exchange forward contracts		147		1		.02		669		8		.04
Equity contracts		45		–		1.10		88		1		.58
Credit contracts		1,559		–		3.41		3,779		1		3.16
Other(a)		–		–		–		1,164		125		2.50
Total	$	36,579	$	163			$	21,030	$	172
December 31, 2016
Fair value hedges
Interest rate contracts
Receive fixed/pay floating swaps	$	2,550	$	49		4.28	$	1,250	$	12		2.32
Cash flow hedges
Interest rate contracts
Pay fixed/receive floating swaps		3,272		108		8.63		2,787		35		.83
Net investment hedges
Foreign exchange forward contracts		1,347		15		.04		–		–		–
Other economic hedges
Interest rate contracts
Futures and forwards
Buy		1,748		13		.09		1,722		18		.05
Sell		2,278		129		.08		4,214		43		.09
Options
Purchased		1,565		43		8.60		–		–		–
Written		1,073		25		.07		12		1		.06
Receive fixed/pay floating swaps		6,452		26		11.48		1,561		16		6.54
Pay fixed/receive floating swaps		4,705		13		6.51		2,320		9		7.80
Foreign exchange forward contracts		849		6		.02		867		6		.02
Equity contracts		11		–		.40		102		1		.57
Credit contracts		1,397		–		3.38		3,674		2		3.57
Other(a)		19		–		.03		830		106		3.42
Total	$	27,266	$	427			$	19,339	$	249

(a) Includes derivative liability swap agreements related to the sale of a portion of the Company’s Class B common shares of Visa Inc. The Visa swap agreements had a total notional value, fair value and weighted average remaining maturity of $1.2 billion, $125 million and 2.50 years at December 31, 2017, respectively, compared to $811 million, $106 million and 3.50 years at December 31, 2016, respectively. In addition, includes short-term underwriting purchase and sale commitments with total asset and liability notional values of $19 million at December 31, 2016.

Customer-Related Derivative Positions of Company

The following table summarizes the customer-related derivative positions of the Company:    

	Asset Derivatives						Liability Derivatives
(Dollars in Millions)	Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years		Notional Value		Fair Value		Weighted-Average Remaining Maturity In Years
December 31, 2017
Interest rate contracts
Receive fixed/pay floating swaps	$	28,681	$	679		5.71	$	59,990	$	840		4.27
Pay fixed/receive floating swaps		63,038		860		4.20		25,093		602		5.76
Options
Purchased		29,091		22		1.61		880		14		4.24
Written		880		15		4.24		27,056		20		1.50
Futures
Sell		7,007		4		1.21		–		–		–
Foreign exchange rate contracts
Forwards, spots and swaps		24,099		656		.81		23,440		636		.83
Options
Purchased		4,026		83		1.20		–		–		–
Written		–		–		–		4,026		83		1.20
Total	$	156,822	$	2,319			$	140,485	$	2,195
December 31, 2016
Interest rate contracts
Receive fixed/pay floating swaps	$	38,501	$	930		4.07	$	39,403	$	632		4.89
Pay fixed/receive floating swaps		36,671		612		4.99		40,324		996		4.07
Options
Purchased		14,545		51		1.85		125		2		1.37
Written		125		3		1.37		13,518		50		1.70
Futures
Buy		306		–		1.96		7,111		7		.90
Foreign exchange rate contracts
Forwards, spots and swaps		20,664		849		.58		19,640		825		.60
Options
Purchased		2,376		98		1.67		–		–		–
Written		–		–		–		2,376		98		1.67
Total	$	113,188	$	2,543			$	122,497	$	2,610

Summary of Effective Portion of Gains (Losses) Recognized in Other Comprehensive Income (Loss) and Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings

The table below shows the effective portion of the gains (losses) recognized in other comprehensive income (loss) and the gains (losses) reclassified from other comprehensive income (loss) into earnings (net-of-tax) for the years ended December 31:

	Gains (Losses) Recognized in Other Comprehensive Income (Loss)								Gains (Losses) Reclassified from Other Comprehensive Income (Loss) into Earnings
(Dollars in Millions)	2017			2016		2015			2017			2016			2015
Asset and Liability Management Positions
Cash flow hedges
Interest rate contracts(a)	$	(3	)	$	46	$	(15	)	$	(19	)	$	(76	)	$	(120	)
Net investment hedges
Foreign exchange forward contracts		(56	)		33		101			–			–			–
Non-derivative debt instruments		(46	)		–		–			–			–			–

Note: Ineffectiveness on cash flow and net investment hedges was not material for the years ended December 31, 2017, 2016 and 2015.

(a) Gains (Losses) reclassified from other comprehensive income (loss) into interest expense.

Summary of Gains (Losses) Recognized in Earnings for Fair Value Hedges, Other Economic Hedges and Customer-Related Positions

The table below shows the gains (losses) recognized in earnings for fair value hedges, other economic hedges and the customer-related positions for the years ended December 31:

(Dollars in Millions)	Location of Gains (Losses) Recognized in Earnings		2017			2016			2015
Asset and Liability Management Positions
Fair value hedges(a)
Interest rate contracts		Other noninterest income	$	(28	)	$	(31	)	$	7
Other economic hedges
Interest rate contracts
Futures and forwards		Mortgage banking revenue		24			101			186
Purchased and written options		Mortgage banking revenue		237			331			191
Receive fixed/pay floating swaps		Mortgage banking revenue		255			226			139
Pay fixed/receive floating swaps		Mortgage banking revenue		(220	)		(140	)		(33	)
Foreign exchange forward contracts		Commercial products revenue		(69	)		(14	)		108
Equity contracts		Compensation expense		1			1			(1	)
Credit contracts		Other noninterest income		3			1			2
Other		Other noninterest income		(1	)		(39	)		–
Customer-Related Positions
Interest rate contracts
Receive fixed/pay floating swaps		Other noninterest income		(876	)		(708	)		360
Pay fixed/receive floating swaps		Other noninterest income		943			769			(320	)
Purchased and written options		Other noninterest income		(24	)		(5	)		3
Futures		Other noninterest income		(3	)		(6	)		1
Foreign exchange rate contracts
Forwards, spots and swaps		Commercial products revenue		92			88			74
Purchased and written options		Commercial products revenue		2			(1	)		2

(a) Gains (Losses) on items hedged by interest rate contracts included in noninterest income (expense), were $28 million, $31 million and $(7) million for the years ended December 31, 2017, 2016 and 2015, respectively. The ineffective portion was immaterial for the years ended December 31, 2017, 2016 and 2015.